So-Called Hot Stocks Are Overrated
Investors tend to chase the flashy stocks, like, say, Sirius Satellite Radio, that turn out to be losers, Cramer said Wednesday, but they’ll gloss right over consistent moneymakers like B&G Foods.
Compare the two and you’ll see what he meant. Sirius closed the day at $1.40 a share, while B&G has earned investors 44 percent since the last time CEO David Wenner appeared on “Mad Money,” Aug. 18, 2009. And that number jumps to 57 percent when you add in the dividends collected from B&G’s juicy 6 percent yield.
B&G makes its money buying troubled food brands from larger companies and turning them around. You might recognize Ortega taco shells, Cream of Wheat, Maple Grove Farms syrup, Polaner spreads and spices, B&M baked beans and so on. Two-thirds of the company’s sales come from brands that are either number one or two in their category.
This turnaround artist delivered a strong quarter on Tuesday, beating the Street’s estimates and raising guidance for the third consecutive quarter. How come no one calls “Mad Money” asking about B&G then? Sometimes Cramer just has to ask the questions himself, which he did tonight in an interview with CEO Wenner. Watch the video for the full interview.
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